Living On Borrowed Time

I posted an article this week about the “new economy”, financialization (debt creation) and the service economy. All our new economy is producing is debt, inflation, and crappy jobs. Meanwhile, one of the most lucrative career choices is welfare.

Our trade deficit continues to grow, month after month, year after year. We issue IOU’s and countries like Korea, Japan, and China send us good. We issue IOU’s and countries like Saudi Arabia and Russia send us millions of barrels of oil. When are these countries going to wise up and quit taking our IOUs?

When your economy survives on debt creation and service jobs, you’re living on borrowed time.

Shocking Facts About The Deindustrialization Of America That Everyone Should Know

By Michael Snyder, on April 3rd, 2014

How long can America continue to burn up wealth? How long can this nation continue to consume far more wealth than it produces? The trade deficit is one of the biggest reasons for the steady decline of the U.S. economy, but many Americans don’t even understand what it is. Basically, we are buying far more stuff from the rest of the world than they are buying from us. That means that far more money is constantly leaving the country than is coming into the country.

In order to keep the game going, we have to go to the people that we bought all of that stuff from and ask them to lend our money back to us. Or lately, we just have the Federal Reserve create new money out of thin air. This is called “quantitative easing”. Our current debt-fueled lifestyle is dependent on this cycle continuing. In order to live like we do, we must consume far more wealth than we produce. If someday we are forced to only live on the wealth that we create, it will require a massive adjustment in our standard of living. We have become great at consuming wealth but not so great at creating it. But as a result of running gigantic trade deficits year after year, we have lost tens of thousands of businesses, millions upon millions of jobs, and America is being deindustrialized at a staggering pace.

Most Americans won’t even notice, but the latest monthly trade deficit increased to 42.3 billion dollars…

The U.S. trade deficit climbed to the highest level in five months in February as demand for American exports fell while imports increased slightly.

The deficit increased to $42.3 billion, which was 7.7% above the January imbalance of $39.3 billion, the Commerce Department reported Thursday.

When the trade deficit increases, it means that even more wealth, even more jobs and even more businesses have left the United States.

In essence, we have gotten poorer as a nation.

Read the rest of Michael Snyder's post.